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MCC decides to write to Govt over hike in property tax

As per an amendment made by the state government to Karnataka Municipal Corporation Act to tweak the property taxes in 2021, the property tax should be calculated based on the prevailing guidance value of the property and even vacant sites are calculated.

Based on complaints from citizens and corporators regarding hike in property tax for 2023-24, the Mangaluru City Corporation (MCC) has decided to write to the government.

As per an amendment made by the state government to Karnataka Municipal Corporation Act to tweak the property taxes in 2021, the property tax should be calculated based on the prevailing guidance value of the property and even vacant sites are calculated. This will be a huge burden on property owners, especially those who have large stretches of vacant sites in the city.

An agenda on collecting the SAS property tax as per the amended act in MCC was discussed at the council meeting held on Friday.

As per the amendment, 25% of the guidance value of the property is considered for calculating property tax. There will be no tax for vacant land up to 1,000 square feet that is attached to the building. However, 0.2% – 0.5% of the prevailing guidance value will be collected as property tax for vacant land above 1,000 square feet.

MCC council opposition leader Naveen D’Souza, corporators from the Congress Praveenchandra Alva and A C Vinayraj raised objections to the amendment citing burden on property owners.

Alva said that even those who have vacant plots will have to pay a huge amount of tax. “There are many families, who have nearly 50 cents of vacant sites in interior areas of the city. Their vacant properties will attract a huge amount of property tax. Families, especially those from the middle class will have to sell their property to pay the tax for vacant plots,” he said.

Vinayaraj said that when 25% of the guidance value of the property is considered for calculating property tax, then the tax on vacant plots is increased by one and a half times.

Chief whip in the MCC council Premanand Shetty said that after the revision of property tax, the tax on vacant plots has been increased considerably. “The issue needs to be brought to the notice of the government,” he added.

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